GBP/USD Forecast – Can British Pound Hold These Key Supports Vs US Dollar?

GBP/USD Forecast – Can British Pound Hold These Key Supports Vs US Dollar?

  • – The British Pound is struggling to move above the 1.3125 and 1.3150 resistances against the US Dollar.
  • – There are two important bearish trend lines formed with resistance at 1.3120 and 1.3148 on the hourly chart of the GBP/USD pair.
  • – Recently in the US, the Fed Interest Rate Decision was announced by the Federal Reserve.
  • – The outcome was around the market forecast, as there was no change in rates from 2%.

 

US ISM Manufacturing PMI

Recently in the US, the Institute for Supply Management (ISM) Manufacturing Index for July 2018 was released. The market was positioned for a decline from the last reading of 60.2 to 59.5.

 

The actual was below the forecast as the Institute for Supply Management (ISM) Manufacturing Index declined from 60.2 to 58.1. Moreover, the Fed Interest Rate Decision was announced by the Federal Reserve, and the central bank made no changes in the rate from 2%.

 

The GBP/USD pair faced a lot of resistance on the upside, but it is holding a few important support near 1.3095 and 1.3080.

 

GBP/USD Technical Analysis

The British Pound formed a solid support above the 1.3085 level and recovered against the US Dollar. The GBP/USD pair traded above the 1.3150 level on a couple of occasions, but it failed to gain bullish momentum and upsides remain capped.

 

GBP/USD Technical Analysis British Pound US Dollar

 

The recent swing high was formed near 1.3145 and the pair declined below the 50% fib retracement level of the last wave from the 1.3094 low to 1.3145 high. It also moved below the 1.3120 support and the 100 hourly simple moving average.

 

At the moment, it is testing the 76.4% fib retracement level of the last wave from the 1.3094 low to 1.3145 high. Below this, there are two important support areas near the 1.3095 and 1.3080 levels.

 

As long as the pair is above the 1.3080 level, it could move higher. Below this, the next stop for sellers may well be 1.3020. On the upside, there are two important bearish trend lines formed with resistance at 1.3120 and 1.3148 on the hourly chart of the GBP/USD pair. A break above 1.3150 is needed for more gains in the near term.


Also published on Medium.

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